b0rderc0llie wrote:Winston, I totally agree with that. Many different asset classes to choose from, and can be long or short. So many possible combinations for different market scenarios.
Millionairemind, yes, the mainstream view of diversification is to reduce volatility while participating in the upside. For myself, I love volatility and therefore my purpose of using asset allocation is not to reduce volatility. It is more of an overall game plan. With an overall plan, I can execute my individual trades clearly.
If I am not mistaken, your asset allocation might be 100% cash now, while waiting for trends to form. That is also one possible asset allocation. I am curious to know how the others are positioning themselves
In order of sizing, I guess it'll look like:
HDB flat (haha)
SG cash ==> say, value = n
---
Aussie FCFD ==> 0.5n
Singapore equities (CPF and cash) ==> 0.5n
---
US equities & equity options ==> 0.5n
I think this is probably not very different from a lot of other people. I don't consider my HDB flat or SG cash an investment (savings rate cannot even buy ice cream). They're there for actual day-to-day living in, transactions, and (for the cash portion) perhaps for future allocation.
Most of the churn happens in the US positions where I'm usually in neutral plays or writing spreads (but slow-moving right now with the low volatility). Some short-term punts now and then as well (just got orh-bak-kak'd last night hahahaha). My trading style is mainly technical, with a fair dose of "too cleverness" (hence the OBKs) if you get what I mean.
